Single Shipment Policy
A Marine Cargo policy covers physical loss or damage to the Insured’s goods or cargo during transit by ocean, air or land (rail or road) or any combination thereof.
Marine Cargo Insurance protects your cargo or goods (when you are importing, exporting or transporting goods locally) while in transit against risks such as breakage, piracy, theft, fire and the sinking of the vessel.
The Marine Transit coverage can be extended to include also the storage of products.
The coverage provided and the policy wording of this coverage is as per the common international standards known as ICC (Institute Cargo Clauses).
A Marine Cargo Open Cover or a Open Policy is the agreement between the Insured and the insurance company to insure all goods in transit within that agreement for an indefinite period, until the agreement is cancelled by either party.
In Marine Open Policy, the following details have to be necessarily specified:
- The general description of the goods / cargo.
- The countries or places to or from where the said goods/cargo will be insured.
- The maximum value payable under the policy – Bottom Limit
- How goods will be shipped
- How the goods will be valued
- The type of coverage agreed – ICC’A’, ICC’B’ ICC’C’ + WAR + SRCC
- Extensions, Conditions of insurance including the deductible, etc.
- The Insured agrees to declare details of all shipments falling within the scope of the policy either on monthly, quarterly or annual basis; and the insurance company agrees to insure such shipments according to the terms and conditions of the policy.
Usually monthly or Quarterly Marine-Bordereau / Statement is prepared and the premium debited accordingly.
Some insurers insist for an annual minimum and deposit premium under such Open covers.
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